Owning a car comes with quite a few extra costs. You’ll need to pay auto insurance premiums, afford maintenance services, and save for potential repair needs, and there’s also the ever-increasing cost of fuel.
While there is always the option of trading your current vehicle for a pre-loved fuel-efficient car at King of Cars or another trusted local dealer, we’ve listed five other ways you can also minimize your car costs.
Compare Auto Insurance Deals
Auto insurance premiums are a significant car expense. But there are ways to pay less for insurance. The most effective solution here is to shop around for car insurance and compare deals to find the most affordable premiums.
Otherwise, you can also consider reducing your current insurance by increasing your deductible. The deductible you pay is only relevant when claiming from your policy. Other ways to reduce car insurance premiums are to bundle your policies, inquire about available discounts, and reduce the likelihood of needing to claim by being a safe driver.
Refinance Your Auto Loan
You can refinance an auto loan just as with a home loan. Even though you can refinance your auto loan to spend less on repayments each month, you will be repaying the loan for longer. This means that you will end up paying more in loan interest.
Keep Your Car In Good Condition
It’s crucial to keep your car in good condition to reduce your expenses. If you don’t maintain your car and keep it clean, you’ll increase the risk of needing major repairs sooner.
Instead of brushing off maintenance, prioritize the maintenance services as recommended by the owner’s manual.
Buy An Extended Warranty
When the manufacturer’s warranty ends, you’ll need to afford major repairs and ongoing services out of pocket. These costs can become astronomical as your car gets older and needs more attention.
Instead of overlooking these costs, it’s wise to buy an extended car warranty. An extended service contract provides financial protection for all those costly unexpected costs associated with car parts, repairs, and labor. However, there are different levels of coverage available for extended car warranties, so you must evaluate the different options before purchasing this kind of service contract.
Unless you trade your car in for a more fuel-efficient model, the only effective way to reduce your fuel costs is to drive less. And while you might initially think it’s not viable to drive less, you’ll find there are several ways to avoid using your car.
You could consider walking or cycling to nearby destinations. At the same time, you can also create a carpool system to get to work and back with colleagues or friends traveling a similar route. Otherwise, you can also consider using public transport where possible.
There are quite a few ways to lower your car expenses. But the most effective way to spend less is to drive an affordable car model that’s fuel-efficient. Affordable car models are also cheaper to maintain because parts are a lot more pocket-friendly.